Non-Farm Payrolls reports the total number of paid U.S. workers excluding farm employees, government employees, private household workers, and non-profit employees. Released on the first Friday of each month at 8:30 AM ET by the Bureau of Labor Statistics (BLS), it is the most market-moving economic release in the world.
What the Report Contains
The Employment Situation Report includes: headline NFP number, unemployment rate, labor force participation rate, average hourly earnings (wage growth), average weekly hours, and household survey data. Each component tells a different story.
Why It Moves Markets
NFP creates more short-term market volatility than any other data release. Within seconds of release, S&P 500 futures typically move 0.5-2%, EUR/USD swings 50-100+ pips, and 10-year Treasury yields shift 5-15 basis points. The reaction depends on context: in 2022-2023, strong NFP was bearish (more rate hikes); in a normal cycle, strong NFP is bullish (growth).
Key Nuances
Historical Context
The U.S. lost 20.5 million jobs in April 2020 β the largest single-month decline ever recorded (BLS). It took until June 2022 to recover all pandemic-lost jobs. During the 2008 crisis, the economy lost 8.7 million jobs over 25 months.